Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000. The excess of total fair value of controlling and noncontrolling interests over book value is assigned to; a building (PPE net) that is worth $100,000 more than book value, an unrecorded patent valued at $200,000, and goodwill valued at $300,000. Goodwill is assigned proportionately to the controlling and noncontrolling interests.

Please explain each step and Show Calculations, Thanks:

• Prepare the consolidated balance sheet at the date of acquisition by placing the appropriate entries in their respective debit/credit column cells.
• Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is an [E] or [A] entry.
• Use Excel formulas to derive the Consolidated column amounts and totals.

B D E G H 1 ACT470-Module 3-Option 1 2 Consolidation Entries Dr Cr Consolidated m7 D 0 Parent 920,000 782,000 1,100,000 1,078,000 Subsidiary 215,000 330,000 425,000 0 0 0 5,400,000 800,000 A 0 0 A A 0 9,280,000 1,770,000 0 4. Cash 5 Accounts receivable 6 Inventory 7 Equity investment 8 9 Property, plant and equipment (PPE), net 10 Patent 11 Goodwill 12 Total assets 13 14 Current liabilities 15 Long-term liabilities 16 Common stock 17 Additional paid-in capital 18 Retained earnings 19 Noncontrolling interest 20 21 Total liabilities and equity 810,000 4,000,000 920,000 700,000 2,850,000 330,000 500,000 90,000 120,000 730,000 0 0 0 0 0 0 9,280,000 1,770,000 0 0 ol 22